..........Besides All India Bank Employees Association (AIBEA), Bank Employees Federation of India (BEFI), All India Bank Officers' Association (AIBOA) and National Union of Bank Employees (NUBE) are participating in the nation- wide strike. The unions claimed that about 7 lakh employees of various public sector banks would participate in the strike.The strike follows Lok Sabha clearing Banking Laws (Amendment) Bill after the government dropped controversial provisions relating to allowing banks to trade in futures.......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Thursday, December 20, 2012
IT would like RBI to look at interest rates: Infy
IT industry would like the RBI to look at the interest rates though such a momentum is building up, Infosys Co-Chairman Kris Gopalakrishnan said today. "There is no conflict," he told reporters here when asked whether he sees any conflict in a scenario where reforms bills are being passed in Parliament on the one hand and the RBI is keeping interest rates unchanged.......
No support
.......It appears that the RBI has taken the decision to avoid surprising the markets, even positively. Past governors of the RBI have been known to deliver positive surprises that can shift the markets, and initiate pre-emptive or anticipatory moves to deal with negative developments on the horizon. It appears the current dispensation in the RBI underestimates the usefulness of such actions. It is far from certain whether that is the correct approach at a time when India should be worried about an “investment cliff” — the fact that investment has collapsed, that there are no orders in the pipeline, and that manufacturing has essentially stopped expanding. The full effects of this freeze have still not played themselves out, and counteractive action from the RBI to support the private sector in advance might have been indicated.........
The banking win-win
The year-end holiday spirit will certainly be missing this year at the Reserve Bank of India’s ( RBI’s) headquarters on Mint Road. For Finance Minister P Chidambaram has just taken away the RBI’s last reason to delay the final guidelines for new banking licences. In fact, the Banking Laws (Amendment) Bill, which the Lok Sabha passed on Tuesday and the Rajya Sabha is due to vote on Thursday, has given the central bank everything it asked for: greater regulatory oversight over banks, the ability to overrule boards and the power to inspect the books of associate companies of the promoter group — its preconditions for new licences. Though it’s debatable whether power to supersede bank boards can adequately safeguard against the problems created by banks promoted by those with interests in other industries, the finance ministry has at least shed its reluctance to bulldoze the RBI......
Read - BS
Issuing new licences will add to competition, grow banks and improve services
....Licensing of new banks has
always been a contentious issue. The RBI has issued only 12 new bank
licences since the beginning of reforms, even while the number of
commercial banks has declined sharply from around 301 to 169 over the
last decade. This has curtailed expansion of banking facilities, leaving
more than 40% of households without a single bank account even now.....
All eyes on RBI for final banking guidelines: Aditya Birla
.........In the first option, NBFC would convert itself in to a bank; this route was also open in the earlier guidelines as well. Second, just apply for bank and continue to keep an NBFC. I think both options remains open in the last set of guidelines that we saw...........
NBFCs open to both organic and inorganic route to set up banks
....If permitted by the RBI, the NBFCs are likely to consider banks at the holding company level and may not convert the NBFC into a bank, according to brokerages. “If they were to convert to an NBFC, they may need to contend with issues relating to concentration risk (for NBFCs doing specialised lending), the impact of statutory liquidity ratio and cash reserve ratio on their existing borrowings. Hence, from an investors’ perspective, we believe the upside (from a bank licence) may be through the SOTP (sum of the parts) route, assuming the holding company were to hold both the bank and an NBFC and is listed,”.......
We Need Larger Banks, not Necessarily More: Kidwai
....The
larger issue is whether our banks are growing fast enough to support
trillion dollars of investment in infrastructure. There’s no way our
banks can support it at their current level of growth. We need larger
banks, not necessarily more banks. To get larger banks, we need to allow
them to go out and get equity. Government-owned banks will have an
issue, as by virtue of their ownership, they have to get funds from the
fisc......
Much more to account for
Banking in India remains a service in acute short supply both in terms of the people it reaches and the amount of credit that passes through the system. Close to half the country’s population have no access to a bank. Indian households park less than half their savings in the financial system. And banks lend just over a half of the national income. India is thus doing a lot of its business without banks. This reflects in the stature of our banks on the world stage: not one, including the state-owned behemoth State Bank of India, figures in international banking’s top league........
RBI’s decision to keep policy rates unchanged evokes criticism
.........“It is ridiculous to keep the policy Repo rate under the liquidity adjustment facility (LAF) unchanged at 8 per cent even after the Headline WPI (whole price index) came down to 7.2 per cent in November. The same RBI, during the last revision in October, cited higher inflation as the reason for not lowering the Repo rate,”..........
Pakistan pushing fake currency into India
....."The security features in the high value currency notes are being constantly upgraded," he said. "The RBI (Reserve Bank of India) has also strengthened the mechanism for detection of counterfeit notes by the banks."
The missing growth push
.....The RBI’s policy statement itself states that time has now come to tilt a little towards growth in its balancing act between growth and inflation. It observed: “In view of inflation pressures ebbing, monetary policy has to increasingly shift focus and respond to the threats to growth from this point onwards.” However, when it came to taking action on this observation, the central bank sought to play it safe and keep its options unutilised. This will harm the growth spurts and the green shoots that are visible and have been referred to in the mid-year economic analysis of the Finance Ministry..........
How RBI’s policy actions affect you
....Where does the CRR fit into all this? While loans are not directly linked to CRR, changes in the ration may impact interest rates. When the CRR is raised, banks have to increase the funds they keep with the RBI. As the CRR earns no interest, banks may have to recoup costs through other lending. They may also have a lower amount available to lend. This may result in interest rates going up. Remember, a CRR change does not always warrant a change in a bank’s base rate.....
Co-op banks told to bring in fresh capital
Kerala State Cooperative Bank (KSCB) and district banks have been asked to mobilise additional capital to comply with licensing norms on a sustainable basis. The directive has come from the regional office of National Bank for Agriculture and Rural Development (Nabard)...........
Karnataka Bank gets NPCI award
Karnataka Bank has received the ‘Operational Excellence’ award instituted by NPCI (National Payment Corporation of India). A bank release said here on Tuesday that the award is in recognition of the bank’s performance in ATMs and switch connected to NFS (National Financial Switch) ATM network.......
Supreme Court Corrects Itself after 14 Years
..........The Court concluded that there was no real or qualitative difference between a case where default has been committed and prosecution launched immediately and another where the prosecution was deferred until the cheque presented again got dishonoured for the second or successive time. As a result, the Supreme Court overruled its decision in the Sadanandan Bhadran case and held that prosecution on the second or successive dishonour of the cheque was also permissible as long as it satisfied the requirements stipulated in the proviso to Section 138 of the Negotiable Instruments Act.
Wednesday, December 19, 2012
Dr. Sandip chosen for "HR LEADERSHIP AWARD"
Dr. Sandip Ghose
Head – Human Resource Management Department
Reserve Bank of India
Mumbai
Dear Dr. Sandip Ghose ,
Greetings!
I am pleased to write to you about
the 2ND INDIA HUMAN CAPITAL AWARDS is scheduled on 21st December, 2012 at
Indira Group of Institute, Pune at 2:00 pm
The Awards is organized for a Professional cause and is not – for
– profit event. Your leadership and contribution is well known. The position
that you occupy in the fraternity is strategic and iconic. As a thinker and
doer you are a role model and a believer in change. On behalf of the Jury, I am
pleased to write to you that we wish to confer you "HR
LEADERSHIP AWARD". This is an appreciation for good work & contribution to
HR.
Yours Sincerely,
Brett Jhonson
Chairman
| India Human Capital Summit 402, Savoy Chambers, Dattatraya Road, Santacruz Jn., Santacruz (W), Mumbai - 400 054 | |
Outreach programme by RBI, Corp Bank held at Nadora
PANAJI: An outreach programme was organised by Reserve Bank of India, Panaji in association with Corporation bank in Nadora on Sunday. Mr G Gopalakrishna, Executive Director, Reserve Bank of India, was the chief guest on the occasion. Other dignitaries who attended the function included Mr Shripad Naik, MP, Mr Kiran Kandolkar, MLA, Mr J B Bhoria, Regional Director of Maharashtra and Goa, Ms R Sebastian, Banking Ombudsman, Mr B B Tejappa, circle general manager, Corporation Bank, Mr Kamlakar Gawas, sarpanch, Nadora Panchayat, Mr Satish Harmalkar, sarpanch, Revora Panchayat and regional heads of various banks operating in the district..............
RBI Workers Union may go on strike on Jan 1
Jammu, Dec. 17: The local unit of RBI Workers Union and Reserve Bank Employees Association served a notice to the management for going on a Strike on January 01, 2013. The notice was served to the Officer-in-Charge in the presence of a large number of staff members. The protesting staff is demanding immediate withdrawal of the decision to close down exchange counters. The trade unions hoped that good sense would prevail on the management and that it would come forward with a proposal for meaningful dialogue on the issues. Earlier, a massive lunch hour protest demonstration was held at the gate of the RBI building at Jammu by the staff members under the aegis of Jammu Chapter of United Forum of Reserve Bank Officers and Employees. The protest demonstration was addressed by the leaders of the constituents of the United Forum which is the representative body of the entire staff of the RBI. The speakers highlighted the importance of continuation of this important function being rendered by RBI since inception. The agitating staff warned the management of dire consequences if the decision is not withdrawn immediately. All the classes of staff across the spectrum of grades participated in the programme. M.Y Tarigami, MLA also joined the protest and spoke at length about the importance of this service to the public at large and expressed grave concern over this decision of the management that would seriously harm the public interest. He assured the protesting employees all support in their struggle.
‘RBI plan to distribute coins only through banks may lead to shortage
.......“It is our endeavor to shift all our retail business to commercial banks. We had announced our intention in our annual policy for 2012-13. We have, however, not decided a date for its implementation,” RBI spokesperson Alpana Killawala said. Traders claim that the RBI is planning to implement the policy from January. “At present, 90 to 95 per cent of the purchase of small notes and coins is being done through the RBI centres. Any move to shut these outlets will cause a shortage of coins in the market in the short term,” Confederation of All India Traders general secretary Mahesh Bakhai said........
Ill advised and unfortunate
RBI reported decision to close the cash counters/exchange counters is ill advised and unfortunate. It runs contrary to RBI's concern for customer service. It is common knowledge that despite having given full powers to commercial banks/public sector banks for exchange of notes under the note refund rules, the banks have been found wanting in exercising those powers and the hapless customers have to visit RBI counters for such exchange. When RBI is having in place the vast infrastructure as also the man power for manning cash counters, it is incomprehensible why the Bank should abandon this job putting the public at disadvantage and deprive it from availing the services of RBI which have been rated as best all along. We request the concerned DG /Governor to have relook in the matter and rescind the decision in the large public interest.
- M.L.Mahajan, Ex-General Manager (via -email)
Reserve Bank may close its counters for exchange of currency notes, coins
........... the Union Forum of Reserve Bank Officers and Employees said, "This will have a deleterious impact on the staff strength of the banks and their morale as a good-number of employees of all cadres are engaged in this customer-friendly activity........''
Traders opposes RBI's plan to close exchange counters for small notes and coins
Mumbai: Confederation of All India Traders (CAIT), Maharashtra Unit has informed Reserve Bank of India that its move to close exchange counters for small notes and coins from new year will cause tremendous hardship to public in general and to traders and hoteliers in particular. Kirti Rana, president of CAIT said, "At present 90 to 95% of small notes and coins are being supplied from more than 100 counters of RBI through out India...........
Technology enabled transformation in the financial sector
Keynote address by Mr G Padmanabhan, Executive Director of the Reserve Bank of India, at the GM/CIOs Conference of the Institute for Development & Research in Banking Technology (IDRBT), Hyderabad, 17 December 2012
....Take the case of payment systems, an area which I am familiar with and where technology has brought in a sea-change. Till 1990s, one could make payments in this country through two predominant means – cash and cheque. Today, a tech-savvy customer is empowered to choose a desired service from slew of products – card payments, NEFT transfer, RTGS transfer, ECS/NECS payments, mobile payments etc. Further, after using any of these payment methods, the first instrument he turns to is his mobile phone for confirmatory messages, a feature unique to India. What would you imagine as the future scenario? ........
Public sector banks, consolidate now
.....The emerging scenario is also turning favourable to the process of consolidation. Mounting pressures to issue new bank licences, which will induce enhanced competition from foreign banks getting full bank licences, and entry of a new set of private sector banks, will also precipitate the PSB consolidation. The Reserve Bank (RBI) has already set the process of new licences in motion by approving the Dutch banking major Rabo Bank’s application for a full banking licence. Goldman Sachs was also given a licence to undertake primary dealership business in debt a few months back. The biggest whale in the Indian banking waters, State Bank of India, is considered to be small fry in the global banking ocean......
Lok Sabha passes Banking Bill, clears way for new banking licenses
...........Although there have been no recent public comments from the Reserve Bank of India on this issue, the RBI had earlier objected to futures trading, saying it could add to the speculative activities of banks. The Competition Commission clause in the Banking Bill has also been modified. This allows the RBI to remain the banking regulator, while the Competition Commission of India (CCI) will regulate mergers and acquisitions........
Banking bill: ‘ Game changer to achieve financial inclusion’
....The passage of the Bill, Shinjini Kumar, Director PWC India said, " Creates necessary condition for some of the important steps forward, the sufficient conditions will be known after RBI issues final guidelines". The Banking Laws ( Amendment) Bill, 2011 will now be taken up for discussion in the Rajya Sabha. " Since the bill is too important for me to pass, therefore I am bringing the Bill dropping the controversial clauses," Finance Minister P Chidambaram said.....
Rupee rise, softening commodity prices to help ease rates: Subir Gokarn, RBI Deputy Governor
MUMBAI: RBI Deputy Governor Subir Gokarn today said the appreciation of the rupee and softening of commodity prices will give the central bank more leg-room to ease the monetary regime going forward. "If commodity prices and rupee appreciation continue we will be more comfortable. This also increases the space for us to reduce rates," Gokarn, incharge of the monetary policy department at the Reserve Bank, said at a function at St Xavier's College here......
RBI policy review: D Subbarao leaves CRR, repo rate unchanged
Highlights from RBI's policy review:
- RBI keeps interest rate and cash reserve ratio (CRR) unchanged
- The biggest risk to growth stems from politico-economic considerations: RBI
- With inflation easing, the monetary policy will focus on removing threats to growth: RBI
- Inflationary pressure moderating but high food and commodity prices continue to remain a risk: RBI
- RBI says it is closely monitoring the evolving growth-inflation dynamics.
- RBI to update formal assessment of its growth and inflation projections for 2012-13 in January.
- With inflation pressures ebbing, monetary policy has to shift focus and respond to threats to growth from now on, says RBI.
Read - Business Today
RBI gets its priorities right - A.Seshan
The Reserve Bank of India (RBI) should be congratulated for its standstill policy of not making any changes in the cash reserve ratio or policy rates. It is clear that it is concerned more with inflation than growth. And if the Government wants to walk the path of growth alone, the RBI too can do so in its anti-inflation drive! It is indeed surprising that, unlike in the past, there were no sound bytes from the Finance Ministry as to what the RBI should do in the policy review. Probably, it is the realisation that the central bank has the courage of its own conviction and not that of the Finance Ministry. The RBI can get autonomy by exercising it in policy making. When asked about monetary easing, the Chief Economic Adviser is reported to have said: “You will know from RBI’s credit policy tomorrow. We have entrusted the central bank to look at the monetary side; let it do its job.”......
Graphic explanation
Unlike in the previous years, the cover of the government’s Mid-Year Economic Analysis booklet had a line graph showing how inflation and the repo rate have moved. The graph clearly indicated that though inflation had shown some signs of moderation, interest rates remained high. A subtle message for the Reserve Bank of India, given that the analysis came just a day before the mid-quarter monetary policy review? Chief Economic Adviser Raghuram Rajan countered that too much should not be read into the diagram. “We were looking to create some vibrancy beyond the standard colourless front page. There were two options. One was to put a photograph of a bank teller or a lady buying vegetables in the market. The other was to present a graph... There is no message. I have been very frank about what I think about monetary policy and don’t send sub-texts,” he said.
BS
RBI likely to lock step with the govt from January
...........In its policy statement today, the bank said that it is "closely monitoring the evolving growth-inflation dynamic and will update the formal numerical assessment of its growth and inflation projections for 2012/13 as part of the third quarter review in January 2013". All eyes are now on the quarterly review in January. If there is a softening of interest rates, it will come as a big relief for both corporate entities and retail borrowers.........
RBI holds out promise of lowering rates while keeping powder dry
The Reserve Bank of India (RBI) has done well not to be swayed by subtle and not-so subtle messages from its political bosses. The governor knows the best support for growth comes not from quick fixes, but from a sustained and low rate of inflation. So even though Tuesday's mid-quarter review of monetary policy, 2012-13 was announced against the backdrop of a rare confluence of marginally better news, the Bank has rightly opted to hold its horses..........
A disappointment from Subbarao For Good
.............By holding both the repo rate and the cash reserve ratio, the governor has established his credentials as an inflation fighter no matter what the investing world thinks of him. Indeed, at a time when faith in many institutions is waning, the central bank's stature is rising in doing the right things for the long term health of the economy........
Read - ET
RBI is focusing on combating inflation: Rajan
Chief adviser to the finance ministry Raghuram Rajan said on Tuesday that the Reserve Bank of India (RBI) had left interest rates unchanged in its mid-quarter policy review keeping in mind its main function—that of price stability. “It is clear they have taken a decision keeping in mind that their main job is combating inflation,” Rajan said after RBI’s announcement of its monetary policy review...........
Just a little bit longer please, Subbu tells Chidu, India Inc
.............Though there will be some immediate howls of protest that the governor didn’t even do anything on CRR, the RBI’s words of comfort on a more-than-likely policy easing come January should provide relief to a corporate sector clamouring for rate cuts since long. Significantly, despite the lack of action from RBI’s end, the BSE Sensex remained flattish and didn’t show any panic or downturn after the statement from RBI was made public. For Finance Minister Palaniappan Chidambaram despite the long wait for a push from RBI’s end, the latest policy statement could signal that in January, New Delhi and Mint Road may finally end up on the same page on how to steer the economy forward.
RBI credit policy arbitrary and anti-growth: CREDAI
......Blasting the status quo in RBI’s monetary policy review as “arbitrary” and “anti-growth”, developer’s apex body CREDAI has called for opening a dialogue with all stake holders before taking policy decisions that impact a cross section. “It is sad and unfortunate to see RBI taking such a stubborn stand, despite economic realities of the day,” said CREDAI national president Lalit Kumar Jain. “We wonder if the RBI policy of causing liquidity crunch leading to short supply and resultant price rise is good for the economy or increasing liquidity and pushing supply to bring prices under control is better,”..........
Global economy still fragile, says RBI
.............With mixed bag of policy actions from different central banks of large economies across the world RBI observed that country growth trajectories appeared to be de-coupling. While in US the revised GDP estimates for July-September of 2012 indicated a pick-up in growth, Euro area growth contracted for a second successive quarter. In Japan too, GDP growth tapered in the same quarter. "Lead indicators point to a modest firming up in the momentum of global growth over the rest of 2012 and in 2013 if there is firm policy action in the euro area and the US. The biggest risk to the outlook stems from political economy considerations that could impede, delay or erode resolute policy action," RBI said..........
True to Form : RBI holds out constructive inaction, while keeping the powder dry
...Even
so, for now, the Governor has earned the right to stay the course and
persevere with his chosen strategy of not easing up on the monetary
front. Not until he sees firmer evidence that the ghost of inflation has
been laid to rest!......
Read - ET
RBI has taken cautious stand: C Rangarajan
 |
There is a reiteration of the intention to move towards a more easy monetary policy beginning first quarter of the next year |
RBI ready for policy gear shift to enter growth lane
.......“With inflationary pressures ebbing, monetary policy has to increasingly shift focus and respond to the threats to growth from this point onwards,’ the RBI observed in a statement, adding there was a case for reinforcing its October guidance of easing policy in the fourth quarter......
Standstill policy
....Sticking to its guidance in the October policy review, the central bank has indicated “policy easing” in the fourth quarter. This, along with its observation that the focus of monetary policy should now shift to growth from inflation will be heartening news for India Inc. which has been grumbling about the bank’s hawkish policy stance. On the flip side, the RBI may have set off expectations with its guidance and if it is unable to meet them either due to a rebound in inflation or deterioration in other economic variables, sentiment could receive a setback....
The time to act was now
....Time is of the essence and the growth slowdown which began in mid-2011 needs to be reversed fast while nurturing the green shoots of recovery......
RBI’s surprising wait
....we had expected the RBI to reduce the CRR by 25 bps in the mid-quarter review. Given its guidance that liquidity conditions will be managed with a view to support growth, the central bank’s decision to retain the CRR at 4.25 per cent of net demand and time liabilities of banks comes as a surprise.......
Rate cut cues
.....While Tuesday’s ‘non-event’ may have disappointed those who should not have expected anything in the first place, they may still draw comfort from the RBI’s explicit reference to monetary policy likely to “increasingly shift focus and respond to the threats to growth from this point onwards”. Coming from the RBI, it could point to rate cuts happening in next month’s quarterly review, by which time the inflation data for December, too, would have been out.....
RBI stays the course
..................The central bank cannot be expected to follow the diktat of the FM. It has a fair amount of autonomy which must be exercised irrespective of how the FM would like it to act. On Thursday, Governor Subbarao yet again disappointed Chidambaram by keeping all the key rates unchanged. .........
RILED FM SKIPS CUSTOMARY STATEMENT
Governor
Duvvuri Subbarao’s rigid anti-inflationary stance for more than a year
appeared to be easing, even though he disappointed investors by not even
reducing the cash reserve ratio (CRR) to ease liquidity pressures. Finance
Minister P Chidambaram made no comment on the policy, possibly for the
first time in years. In the past, he has publicly spoken of the need for
lower interest rates...........
Read - ET
Read - ET
Behind the curve
......And yet, RBI remained unmoved and refused to lower the policy rate on Tuesday. This despite the fact that RBI itself said the October IIP was a bit of a statistical illusion and “the seasonally adjusted three-month moving average annualised momentum indicator also points to ebbing of inflationary pressures”. ............
Tuesday, December 18, 2012
Up close with Reddy
In September, an Indian newspaper ran a report, titled “If you go by their ad, YV Reddy could become the next governor of Bank of England”. How do you feel after reading the report? Dr Reddy grinned. "Well, the report was actually to describe the process of recruiting the central bank chief in the United Kingdom," said Reddy, the former governor of the Reserve Bank of India. "I think this is important. They make an advance succession plan for important positions.”........
Duo cheated of Rs 60,000 on promise of RBI job offer
AURANGABAD: An unidentified man duped a man and his sister-in-law of Rs 60,000 on the pretext of getting them employment with the Reserve Bank of India (RBI). The duo had deposited the amount in the suspect's bank account after a monk allegedly recommended the duo to do so. A complaint was lodged by the victim on Saturday with the detection branch of the Cantonment police station..........
The ‘new normal’ is abnormal - A.Seshan
.....There is thus not much difference in the economic situation between now and the last occasion, or even earlier, when the Reserve Bank of India (RBI) undertook a review of its monetary policy. There is, however, one significant and dramatic difference in the thinking of the central bank to reveal that times are indeed changing. Due perhaps to frustration, the central bank seems to be throwing in the towel instead of the gauntlet in its battle against inflation. Speaking at a panel discussion recently, the RBI Governor is reported to have said that he was ready to revisit the ‘ideal’ inflation target of 4-5 per cent, which many feel is too low to attain in the current circumstances. He said: “I am not saying that we would definitely change the number, but we will certainly revisit our strategy.” The psychological danger flowing from the change in the official view on inflation is the consequent damaging effect on the price expectations of the public.......
RBI holds Financial Literacy Campaign
As a part of our ongoing financial literacy campaign, Reserve Bank of India, Bhopal put up a financial lietracy stall at Bhopal Haat in Handloom Expo Fair for four days from December 7 to December 10, 2012 to educate the public about RBIs role and functions, basic banking, security features of bank notes, banking Ombudsman scheme etc.........
Kolkata win All India RBI Sports Meet
Bhubaneswar: Soccer lover State Kolkata edged out Delhi by 3-1 goals and emerged champion in the 30th All India Reserve Bank Sports Meet at Kalinga Stadium here on Saturday. Altogether 17 football teams participated. After 16 years Bhubaneswar successful hosted the national meet from December 9 to 15. In which more than 750 players from across 22 branches were participated in four different events in the seven-day-long meet. In which 36 players and three officials of the host team were took part.
Final Results:
Football: Kolkata (champion), New Delhi (runners-up), Carrom: Men’s; Mumbai, Nagpur, Women’s; Chennai, Patna, Table Tennis: Men’s; Kolkata, Guwahati, Women’s; Mumbai, Belapur, Badminton: Men’s Singles; Rudra Kaushik (N. Delhi), Sanjay Das (Kolkata), Men’s Double’s; Supriya Banerjee & Sanjoy Das (Kolkata), Rahul Sharma & Gurvinder Singh (Jammu).
The Pioneer
Come new year, RBI may shut down counters for exchange of notes, coins
......The United Forum of Reserve Bank Officers and Employees is up in arms against the proposal on the grounds that it would cause inconvenience to the public as there has always been a shortage of coins and the move also works against the staff interests. “This will have a deleterious impact on the staff strength of the banks and their morale as a good-number of employees of all cadres are engaged in this customer-friendly activity…,’’ the union said in a representation submitted to the RBI Governor last week. The union had also slapped a strike notice in this regard, it is learnt. The RBI’s Citizen Charter mentions that it would ensure ‘prompt and courteous service’ in exchange of notes and coins in the denominations of the customers’ choice......
My View on "RBI may shut down counters for exchange of notes, coins"
Height of customer service in RBI is elimination of customers itself.
RBI preaches customer service to banks but in practice does not allow
customers inside its premises.
- S.G.Shivashankar, Ex-Manager, Bangalore (via e-mail)
- S.G.Shivashankar, Ex-Manager, Bangalore (via e-mail)
I
do not know what is the compulsion of the move to close the public
counters. This is perhaps the only function of RBI, where direct contact
with public takes place and their requirements are satisfied in the
minimum of time. In
Kochi office of RBI, the main function of the office is to cater to the
needs of members of public through the public counters for exchange of
notes and issue of coins. Kochi being the prominent and number city of
Kerala state, the requirements of fresh notes and coins is quite large.
As compared to the main office in Thiruvananthapuram, Kochi office
public counters attend to, on an average, about 1000 to 1100 customers
every day. When our Governor, Dr.Subbarao had visited Kochi office in
March 2011
(just to before my retirement), he was visibly surprised at the
serpentine queues at the Banking Hall for notes and coins. In fact,
Kochi Office attends to customers nearly 3 times the number of customers
turning at TVM office counters. Promptly, the Hon. Governor had
agreed with Kochi office proposal to expand the Currency Chest and asked
RD, TVM office to follow up the matter closely. I
do not, therefore, able to comprehend as to what relief will RBI get
from disassociating itself from servicing Public Counters. It is also an
established fact that commercial banks seldom extend the service of
'issue of fresh notes and coins' through their banking counters. This
has been repeatedly emphasized in the 'incognito visit reports' by RBI
officers to bank branches. I am pretty certain that ill-advised move
will definitely evoke a huge public outcry not only here but all over
India. Common people always look
upon RBI public counters as the ultimate place to meet their
requirements of fresh notes and coins
- S. Srinivasan, Kochi (via e-mail)
Syndicate Bank opens special counter for exchange of coins
HYDERABAD, DEC. 17:
Syndicate Bank has opened a dedicated counter for exchange of coins and small notes on retail basis at its branch located on Mehdipatnam-Mallepally road..............
My View on “Cartelising savings bank rate?”
“Cartelising savings bank rate?” (Business Line, December 14) is disappointing when we consider the customer’s approach to savings bank accounts. All that has been stated by the author is purely from the banker’s viewpoint and not from the angle of customers. Most customers of PSBs use savings bank accounts for transactions or for withdrawals to meet personal expenses. Although there are restrictions (number of withdrawals in a month), PSBs never penalise savings bank customers. Secondly, with most of the PSBs offering automatic conversion of surplus funds in savings bank accounts into fixed deposits, the residual amount is insignificant. Private sector banks that have jacked up savings bank interest rates have not been able to significantly improve their market share of low-cost deposits. As banks have been paying low rates on savings accounts for more than 100 years, individuals have not been attracted to these accounts.
- K. V. Rao (HBL)
Axis Bank offers ‘e-Gift Card’
Axis Bank, India’s third largest private sector bank, will now allow its domestic customers to send an online card with the launch of ‘e-Gift Card’. The card offers customers an alternative channel facility through which they can buy a gift card on www.gogiftacard.com where a customer can buy and send a card of his choice by either e-mailing it or sending it via SMS to their loved ones, the bank said in a statement..........
Won’t Monitor Retail Dollars: RBI to Finmin
The RBI has told finance ministry
that it would not be able to monitor the end use of funds brought in to
set up foreign-funded stores, according to a person privy to the
development..............
RBI ban on border trade restricts growth
...........Confiding that the State Government has been kept in the dark about the circular issued by the RBI, the source revealed that the RBI circular also restricted the barter trade to land route wherein transactions of the trade should take place by way of head load or non-motorised transport system. It has also been reportedly stated in the circular that there would be no monetary transaction under the barter trade agreement while also adding that consignments of imports and exports should be invoiced in USD......
‘RBI norms on foreign banks entry soon’
The Reserve Bank of India (RBI) is soon expected to relax norms for entry of foreign banks into the country, a top government official today said. “RBI is very soon, I believe, is going to announce a very progressive policy for permitting opening of more foreign banks...” Commerce Secretary S R Rao said. He was speaking at a CII function on ‘Driving South Asia Economic Integration’.........
Govt plans gold-linked schemes to curb imports
Attributing the surge in gold imports to high current account deficit, the Government today said it is considering schemes such as gold deposits, accumulation plans, gold-linked accounts and pension products to curb demand for the precious metal. In its Mid-Year Economic Analysis tabled in Parliament today, the government said gold-backed products will help the investor enjoy benefits of investment in the metal without investing in the physical commodity........
Saving for a rainy day
.....Earlier, in March 2012, the RBI issued a discussion paper on the introduction of dynamic provisioning in India. But first, let’s understand what a provision is. In accounting terms, it is an amount set aside from profits to cover a future liability. As the exact amount of the liability is unknown, it is estimated. Now, how do banks make provision for loan impairments globally and in India, and why is the RBI discussing dynamic provisioning?.......
Old habits die hard
The finance ministry may have come up with the idea of a National Investment Board to kickstart stalled projects. But while the Cabinet rechristened the NIB to the Cabinet Committee on Investment (CCI), the finance ministry’s mid-term review of the economy continues to call it the NIB. Perhaps the mid-term review was written before the Cabinet decision or perhaps the finance ministry still yearns for the days when the NIB was a stronger body unlike the watered-down CCI.
FE
My View on "Growth: Lost between RBI and North Block"
The observation, “Continuing with unquestioned faith on the part of the RBI on central bank autonomy, which is illusory; and of the Central Government on austerity and fiscal discipline as a panacea for growth (leave alone distribution) can no longer be trusted as a solution for a revival of the ailing economy” says much more than what has actually been said, leaves a lot of scope for interpretation. It would appear, the writer believes that the present unhappy bickering around North Block and Mint Road is about real differences in policy perception. One wishes, it was so. The fact is that the attempt by Finance Ministry to act as a super regulator over all regulatory bodies in the financial sector is getting more and more exposed in the recent past. This will destabilize the equilibrium deftly built up by eminent persons who headed Finance Ministry and RBI in the formative years of financial regulation in India and consciously maintained by their successors till the recent past.
- M G WARRIER (HBL)
Five reasons why RBI should cut interest rates
A majority of analysts expect the Reserve Bank of India (RBI) to keep the repo rate on hold on Tuesday. Of 41 analysts polled by Reuters, 37 expect the RBI to keep the policy repo rate unchanged at 8 per cent in December. However, some analysts and investors, though in a minority, have not discounted the possibility of the central bank cutting interest rates for the first time since April on Tuesday........
No-action policy ahead of January rate cut?
....In fact, in the October policy statement, the central bank made it clear that rates may be eased only in the fourth quarter of the fiscal, beginning January. Since the next policy meeting after the 18 December review is in January, RBI is expected to cut rates then, given the fact that wholesale price inflation in Asia’s third largest economy is easing and the government, despite political resistance, is serious about pushing economic reforms—two necessary preconditions for cutting rates......
Nurturing growth
This is with reference to “RBI will likely wait again’’ (Business Line, December 17). The need of the hour is growth. All the sectors have been showing moderate growth or declining growth rates during the last many quarters. It is time for the RBI to take measures like reducing policy rates to provide a positive stimulus to investors. The private investing community and entrepreneurs should come forward for making investment in productive ventures. This will be possible, provided the RBI Governor reduces the policy rates and the CRR by at least 50 basis points. Hence, the RBI need not wait for the Budget to get a clear picture on fiscal consolidation. Once the growth improves, prices will start falling automatically and inflation will be reined in. However, one should remember that there are various reasons for inflation, apart from increase in money supply.
- Nisha Narayanan (HBL)
RBI likely to use CRR tool again
Faltering deposit growth and an uncomfortable liquidity situation could prompt the Reserve Bank of India (RBI) to cut the cash reserve ratio (CRR) by at least 25 basis points at its mid-quarter policy review on Tuesday. Notwithstanding the better-than-expected inflation and industrial production numbers of late, most economists, however, feel that central bank will wait until January to cut interest rates............
Govt Thumbs RBI for a Lift on Road to Growth
Declaring
that the economic slowdown had “bottomed out” and inflation was
“moderating”, the government has predicted growth rebounding in the
second half and made a pitch to the Reserve Bank of India (RBI), which
reviews its monetary policy on Tuesday, for “supportive” steps to keep
up the spirits...........
Read - ET
Read - ET
Wrong time for jugaad
.....Prudence, therefore, demands the Governor keep his powder dry. For now ! Indeed, the popular assumption that a rate cut alone is enough to lead to faster economic growth reminds me of the old joke on the uncanny parallels between two years, 1981 and 2005. 1981: Prince Charles got married. Liverpool was crowned soccer champion of Europe. Australia lost the Ashes. The Pope died. 2005: Prince Charles got married. Liverpool was crowned soccer Champion of Europe. Australia lost the Ashes. The Pope died. What’s the lesson to be learned? The next time Charles gets married, someone should warn the Pope! Likewise, don’t jump to hasty conclusions. Quick-fixes don’t lead to quick results !
Read - ET
Inflation and the rate cut conundrum
.....Rising inflation expectations are one indication that people expect high inflation to continue despite what policymakers may say. So RBI needs to win a decisive battle against inflation if it has to maintain its credibility; premature rate cuts could be damaging in the long run. But how can we know if such a victory is round the corner? ......
Which rate to cut?
..... as Bank of America-Merill Lynch points out, a cut in the cash reserve ratio and open-market operations are far more essential than a repo rate cut. That’s because a policy rate cut by the Reserve Bank of India may not translate into a decline in lending rates until liquidity improves.....
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